GREAT NECK, N.Y., Jan. 27 /PRNewswire-FirstCall/ -- Feldman Mall Properties, Inc. (Pink Sheets: FMLP) announced today that it has received notice that Inland American Real Estate Trust, Inc. ("Inland") has exercised its rights to terminate the letter agreement that was previously announced on November 14, 2008. The agreement with Inland provided that Feldman would repurchase from Inland 2,000,000 shares of 6.85% Series A Cumulative Convertible Preferred Stock (the "Series A Preferred Stock"). In exchange, Inland would have received title to the Stratford Square Mall, located in Bloomingdale, Illinois; Northgate Mall, located in Cincinnati, Ohio; and the Golden Triangle Mall, located in Denton, Texas (collectively, the "Malls"); subject to the mortgage indebtedness secured by the Malls. Inland would also have delivered to the Company $9.125 million in cash representing the amount by which the value of the Malls, subject to the outstanding indebtedness, exceeded the value of the Series A Preferred Stock. As a result of the termination of the transaction with Inland, the Company will need to raise capital from an alternative source in order to retire the $28.5 million principal amount of unsecured fixed and floating rate junior subordinated notes and related trust preferred securities. In addition, the Company will need to raise sufficient additional capital or negotiate appropriate modifications to existing debt arrangements in order to continue to fund its ongoing operations. However the current economic and business environment makes the achievement of any such alternative transactions especially difficult and there can be no assurance that any such transactions will be completed. About Feldman Mall Properties, Inc. The Company's common shares are quoted on Pink OTC Markets, a privately owned company formally known as Pink Sheets, which operates Pink Quote. The Company's portfolio, including non-owned anchor tenants, consists of six regional malls aggregating approximately 5.8 million square feet. For more information on Feldman Mall Properties Inc., visit the Company's website at http://www.feldmanmall.com/. DATASOURCE: Feldman Mall Properties, Inc. CONTACT: Thomas E. Wirth, President & Chief Financial Officer of Feldman Mall Properties, Inc., +1-516-684-1239 Web site: http://www.feldmanmall.com/

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